Smile 🙂 2020 is your year!
It’s not too late to set financial goals for the new year. To learn a few life hacks to financial freedom, keep reading.
1. Write down your goals
This way, you can tick them off the list once you achieve them. The feeling of satisfaction that comes with ticking off most or all of the goals when you do is surreal.
2. Draw a budget
You can do this with percentages by allocating what percentage of your income will go to each goal or responsibility per time. For instance, 20% savings, 15% school fees etc.
3. Have an emergency fund of at least N15,000
An emergency fund is especially important if you have many dependents or responsibilities. Thus, if any unforeseen circumstance or disaster comes up, you have a little money set aside to offset the damages. Based on your income range, your emergency fund can go even higher then N15,000 but should be at least 10% of your monthly income.
4. Save 20% of your monthly income
This will enable you build a savings culture as well as discipline into a healthier spending habit. It will also add up to your net-worth.
5. Get a side hustle or multiple side hustles
Having additional sources of income asides your normal job or business helps to cover for delay in payment, unforeseen circumstances as well as unplanned expenses and even treats. Multiple sources of income are always a good idea. Some popular side hustles in Nigeria include: social media handling, human hair sales, makeup artistry, mini importation etc.
6. Read 12 books about finance (1 per month)
Reading is a very good form of personal development and it will also improve your knowledge base which help in making smarter financial decisions. This in turn enables financial freedom.
7. Monitor and record your expenses
Doing this can help you determine where most of your money goes and plan to reduce irrelevancies and improve on necessities.
8. Diversify your investments
You can build your stock portfolio by investing in shares, bonds, treasury bills, mutual funds, money and capital market instruments. Real estate and agriculture are also tested and trusted ways of earning passive income. Pettysave brings together many of these investment options, simplifies them and makes them available via our ‘Investment’ feature. Start investing today.
9. Offset your debts
If you are in debt, don’t run away from the problem by avoiding your creditors. Meet with all of them and discuss a feasible pay-back plan over a specific period of time according to your own income. Once you pay it all back, don’t forget to be more mindful of your savings and spending so as not to fall back into debt. Remember how difficult it was to come out of.
10. Learn something new
Another good self development exercise is to invest some time and resources into learning a new skill. This can eventually transform into a side hustle or remain just a recreational hobby.
If this article was helpful, share with someone else who may find it helpful too.
Have an amazing year!